3 Steps to Finding Great Growth Stocks

There are many ways to find great stocks. You canwas to build your team around a big center and we
ask your broker? You can get a hot tip from ahad names such as: Wilt Chamberlain, Bill Russell, and
neighbor? You can listen to analysts on T.V.? Or youShaq. Now we have a shift in industry to the
can find the next great growth stock all on your owncomplete athletic guard that can shoot, jump, drive,
and it is not as hard as you think. The trick is relatingand play good defense. Names such as: Michael
stocks to something you already know well.Jordan, Kobe Bryant, and Lebron James come to
I have always played sports and relate mostmind. In recent years we have seen Oil dominate the
everything to sports. So I thought to myself, whatstock market as a leading industry, but is there a
do great athletes and great stocks have in common.shift on the way with the need to find alternative
Then I thought to myself if I were a coach whichenergy resources. Will companies involved with wind
athletes would I choose for my team. The answer isand solar energy be the next big names we hear
quite simple, first I would look at the statistics offrom to drive the stock market.
each player and choose the ones that areStep 3: TECHNICAL STOCK CHARTS
consistently improving and have the best numbers.Technical Charts allow us to see the historical price
Second, I would take the very best player with theand volume movements of a particular companies
best numbers at their particular position. Third, Istock. Much like we would graph the statistics of a
would review the player's history to get a clearplayer to track their progress and give us a
picture of how they have progressed, whether theyvisualization of their improvement, a companies stock
have been resilient in tough times, and continued tochart will give us an accurate picture of their price
work hard in good times. This helped me to come upperformance. There are two important variables we
with the F.I.T. Plan for selecting high quality growthmust look at when reviewing stock charts. First, we
stocks.want to see continuous price improvement. Second,
Step 1: FUNDAMENTALSwe want to see strong volume associated with the
In the sports world they are known as statistics.price movement as it rises. When price and strong
They help us track performance. In the world of thevolume are moving up in tandem it tells us that the
stock market, fundamentals are a company'scompany is very much in demand. This strong price
statistics. The fundamentals tell us how bad or greatand volume movement is similar to that star player
a company is doing. The statistics you are looking forentering the draft and every team is scrambling to
will be labeled in categories such as: Quarterlyget him on their team. When we see price moving up
earnings, Annual earnings, Sales growth, Profiton strong volume, it is every mutual fund, pension
margins, and Return on Equity. Look for the bestfund, and big bank trying to get that company on
numbers possible in each of these areas, and thattheir team and they are willing to pay top price. The
the numbers are consistently improving. That is abest news is we can own a piece of that company,
company you want on your team. Wait a minuteit is called stock.
that could take forever. Good News! There is a greatFinding great growth stocks is not hard; it just
newspaper called "Investors Business Daily" that hasrequires 3 simple steps. Following the F.I.T. Plan of
over 3,000 companies listed with all of their statistics.Fundamentals, Industry, and Technical Stock Charts
Look for companies with ratings of 90 and above,will lead you to some of the very best growth
and with letter ratings of A or B.stocks traded on the stock market. These will be
Step 2: INDUSTRYcompany's whose fundamentals shine, who are
Think of Industry as a player's position. If ten playersleading the way in their industry through innovation
are trying out for the same position, we are lookingand sound business practices, and whose stock
to find the very best player at their position. In thecharts show technically sound patterns of reaching
stock market similar companies are grouped togethernew price highs on strong volume. The F.I.T. Plan
in an Industry (position) and we want to find thehelps you find the strongest and healthiest growth
very best company within their industry. We alsostocks available and may even get your investments
want to find the strongest Industry to build our teamin the best shape of their lives.
around. In the NBA, for awhile the strong industry